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I Need To Cry . Q5 Or Q6?

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KenAZ

Senior Member
Gold Supporting Member
Joined
Jan 6, 2010
Professional Status
Certified General Appraiser
State
Dom. Republic
Nightmare VA appraisal. Located in an Urban area. Was used as a bail bonds business with the residence in back. The bail bond signs have been covered or painted over. Appears the owner built everything himself. All buildings are permitted somehow. Every code violation imaginable. Roof collapsing, but not leaking. Upstairs bedroom is accessed by a ladder type stairway. Plywood walls and floors. Poor quality stucco on the exterior.

Guest House, a trailer (Not Manufactured Home) was converted and expanded, using 2x4 and 4x4 pillars. Oh, the hitch is still attached. Guest house has hot water via overhead pipe from the main home. Part of the trailer was peeled back for one of the extensions on one side, the other side has the exterior wall removed.

Zoned Light Industrial, surrounded by commercial properties, but next door to another house.

The home is definitely a Q6, but to meet MPRS a lot of repairs will be needed, but I am not sure if I should call this a Q5 subject to MPRS repairs?

I am not sure if Highest and Best Use is to sell as vacant lot. I can run land comps, but wouldn't that be considered a commercial appraisal?

I don't even know where to begin on repairs. I was told to count the upstairs as a finished attic. Give no value to guest house. I think that there is a good chance the electrical and plumbing are not up to code, but I cannot tear apart the walls to see. There was just too much. I was overwhelmed at the inspection. I took pages of notes, but do not know where to begin when writing this up.

Any help would be appreciated!
 

residentialguy

Elite Member
Joined
Mar 24, 2009
Professional Status
Certified Residential Appraiser
State
Minnesota
C6&Q6 is automatic subject to repair...hence you're report will actually be reported as C4 & C6, since your report will reflect the as repaired state. (You must clearly explain that in your comments, however)
 

Michigan CG

Moderator
Staff member
Moderator
Joined
Nov 1, 2006
Professional Status
Certified General Appraiser
State
Michigan
Light industrial zoning most likely does not allow for residential uses. From the sound of it your improvements would be suffering greatly from functional obsolescence.

Narrative report.

I am doing one right now where the comps are ALL houses that sold for the land value. EVERY comp house has been torn down.
 

Tom D

Senior Member
Gold Supporting Member
Joined
May 22, 2015
Professional Status
Certified Residential Appraiser
State
Pennsylvania
as a famous existential novel says, 'run rabbit run'. however, i don't do VA. isn't their motto 'march or die'. oh wait, that's the french foreign legion. if you feel that this is a nightmare now, then it is only the beginning of your woes. say this may be commercial h&b, and the state does not allow you to do these.
 

EddieB

Elite Member
Joined
Feb 17, 2005
Professional Status
Certified Residential Appraiser
State
North Carolina
NC allows CRs to perform commercial up to $250k, if competent....
 

Don Clark

Elite Member
Joined
Jan 17, 2002
Professional Status
Certified Residential Appraiser
State
Virginia
Nightmare VA appraisal. Located in an Urban area. Was used as a bail bonds business with the residence in back. The bail bond signs have been covered or painted over. Appears the owner built everything himself. All buildings are permitted somehow. Every code violation imaginable. Roof collapsing, but not leaking. Upstairs bedroom is accessed by a ladder type stairway. Plywood walls and floors. Poor quality stucco on the exterior.

Guest House, a trailer (Not Manufactured Home) was converted and expanded, using 2x4 and 4x4 pillars. Oh, the hitch is still attached. Guest house has hot water via overhead pipe from the main home. Part of the trailer was peeled back for one of the extensions on one side, the other side has the exterior wall removed.

Zoned Light Industrial, surrounded by commercial properties, but next door to another house.

The home is definitely a Q6, but to meet MPRS a lot of repairs will be needed, but I am not sure if I should call this a Q5 subject to MPRS repairs?

I am not sure if Highest and Best Use is to sell as vacant lot. I can run land comps, but wouldn't that be considered a commercial appraisal?

I don't even know where to begin on repairs. I was told to count the upstairs as a finished attic. Give no value to guest house. I think that there is a good chance the electrical and plumbing are not up to code, but I cannot tear apart the walls to see. There was just too much. I was overwhelmed at the inspection. I took pages of notes, but do not know where to begin when writing this up.

Any help would be appreciated!

I have had a few of those. Is this a Liquidation? If it is, it is then an "as is" appraisal with a required list of repairs. I have appraised several where I stated highest and best use was to demolish and sell the land. I also had one where the house had burned down. One person at VAaid to do a land appraisal. I did. Another person said, later that VA does not accept a land appraisal. i referred that person to the other person and they did pay me. Use your best judgement and call it like it is.
 

Don Clark

Elite Member
Joined
Jan 17, 2002
Professional Status
Certified Residential Appraiser
State
Virginia
C6&Q6 is automatic subject to repair...hence you're report will actually be reported as C4 & C6, since your report will reflect the as repaired state. (You must clearly explain that in your comments, however)

If it is a Liquidation it is "as is" always. OP did not say if it was a liquidation.
 

KenAZ

Senior Member
Gold Supporting Member
Joined
Jan 6, 2010
Professional Status
Certified General Appraiser
State
Dom. Republic
If it is a Liquidation it is "as is" always. OP did not say if it was a liquidation.
It is not a liquidation. It is a cash out refi

Ugh!
 

Don Clark

Elite Member
Joined
Jan 17, 2002
Professional Status
Certified Residential Appraiser
State
Virginia
It is not a liquidation. It is a cash out refi

Ugh!

Then I would notify the RLC as to what you have found. They will likely cancel the assignment as it will not meet VA MPR's. I have done that several times.
 

J Grant

Elite Member
Joined
Dec 9, 2003
Professional Status
Certified Residential Appraiser
State
Florida
Nightmare VA appraisal. Located in an Urban area. Was used as a bail bonds business with the residence in back. The bail bond signs have been covered or painted over. Appears the owner built everything himself. All buildings are permitted somehow. Every code violation imaginable. Roof collapsing, but not leaking. Upstairs bedroom is accessed by a ladder type stairway. Plywood walls and floors. Poor quality stucco on the exterior.

Guest House, a trailer (Not Manufactured Home) was converted and expanded, using 2x4 and 4x4 pillars. Oh, the hitch is still attached. Guest house has hot water via overhead pipe from the main home. Part of the trailer was peeled back for one of the extensions on one side, the other side has the exterior wall removed.

Zoned Light Industrial, surrounded by commercial properties, but next door to another house.

The home is definitely a Q6, but to meet MPRS a lot of repairs will be needed, but I am not sure if I should call this a Q5 subject to MPRS repairs?

I am not sure if Highest and Best Use is to sell as vacant lot. I can run land comps, but wouldn't that be considered a commercial appraisal?

I don't even know where to begin on repairs. I was told to count the upstairs as a finished attic. Give no value to guest house. I think that there is a good chance the electrical and plumbing are not up to code, but I cannot tear apart the walls to see. There was just too much. I was overwhelmed at the inspection. I took pages of notes, but do not know where to begin when writing this up.

Any help would be appreciated!
On a tough assignment like this, it helps to break it down into steps, and work each (lousy) step at a time eventually in that manner it becomes complete. First step of course is HBU, if it is a tear down or sell for land value HBU/other, then contact client in case they would cancel it? If not then write up as HBU as you see it, consult client what form etc . The loan may be turned down for HBU other or tear down but so be it. .

However if conclude HBU as exists/res, do it as answering your own questions posed, one step at a time...for MPR repairs, what C 5 or other rating would be, what Q6 or other rating it is etc. The challenge will be to find similar crappy construction/condition comps. The trailer is personal property therefore would not contribute to value in report. If it has been semi built into a slab or such might have residual value similar to a shed or garage. That would be your call. Recommend or require electrical and plumbing inspections if you suspect not to code by visual inspection. Good luck.
 
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